Profitability and Revenue up at Pyxus

Pyxus International reported sales of $634.9 million for the first quarter of 2025, up 33.1 percent from the comparable 2024 quarter. Operating income grew to $40.5 million, and net income was $4.6 million.

“We are pleased with our strong first-quarter results, which are underscored by gains in revenue and profitability, as well as the significant growth of shipments for the period,” said Pyxus President and CEO Pieter Sikkel in a statement.

“Earlier leaf purchasing compared to the prior year remained a theme in the first quarter, particularly in South America and Africa. This trend was driven by a highly competitive market environment, which was influenced by reduced crop sizes due to El Nino and sustained, strong demand.

“Our crop purchases in South America were completed early in the quarter, and we are nearing completion of our buying activities across Africa. We are pleased with our teams’ ability to navigate the competitive market to successfully secure leaf volumes on an expedited crop purchasing schedule.

“As mentioned last quarter, we do expect some margin pressure in coming quarters, particularly related to shipments out of South America. This is mainly due to impacts on this crop from El Nino on volume and margin, as well as shipping container shortages, primarily from Asia.”

For fiscal year 2025, Pyxus continues to expect sales in the range of $2.1 billion to $2.3 billion and adjusted EBITDA in the range of $165 million to $185 million.